pobierz - Wydział Nauk Ekonomicznych SGGW w Warszawie

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stage is the calculation and analysis of the projected financial statements. Exactly
after this the management must decide whether to accept the general budget or
specify the plans.
Analysis of Current Activity of Enterprise and Budget
Monitoring
Budgeting is not only the instrument of planning the process of financing,
but also control instrument over the state and changes in the financial resources
of enterprise. Therefore, along with the budgets for the next period it is expedient
to make reports on budget performance for the previous period, as well as to
compare planned and actual indexes. According to the results of comparison the
analysis of variance is carried out, namely: the level of variance of actual indexes
from planned ones is estimated and reasons of their origin are investigated. Thus,
variance can be:
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negative, when actual indexes are below planned performance indicators;
positive, when actual indexes are higher than planned performance indicators.
Plan-fact analysis can be conducted for all basic budgets. If there is a necessity
for more detailed study of the causes for deviations, a plan-fact analysis is
conducted even for individual operating budgets. In addition, it can be done both
for an enterprise on the whole and for specific businesses included in its composition.
In any case the choice of objects of a plan-fact analysis is an internal affair
of each individual enterprise and depends only on the goal of budgeting set by
management.
Basic elements of a plan-fact of analysis are:
– objects of analysis are budgets of structural divisions;
– subjects of analysis are separate descriptions of the state of budgets (limits
and standards which are determined directly on each individual enterprise);
– technology of analysis is realization of procedures essential for identifying
deviations of actual indexes from planned ones.
In the process of analysis of current activity of enterprise and budget monitoring
the following constituents can be distinguished:
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appointment of agents responsible for implementation of items of enterprise
budget;
collection of information about economic activity of enterprise;
determination of control indexes to analyze budget implementation;
comparison of planned and actual performance indicators;